Currency Interventions «

The Group of Seven nations have agreed to do a coordinated intervention on the Yen.

The G7 has primarily kept it plans secret, but the basic focus is to keep the markets stable. Traders should not take this is central banks changing the direction of the trade, they are just working to keep some order in the Yen trading markets.

The Bank of Japan is not too hot on the idea of a strong JPY anyway, particularly against the USD, but that train left the station long ago. The intent of this intervention is to avoid 5 minute 500 pip jumps that we saw a short time ago.

Even with what appears as some stability coming out of Japan, the economic problems are far from over. There is still chaos in the middle east and the economic toll from the situation in Japan cannot even be calculated at this point because they are still operating in crisis mode.

Until things settle down, the JPY remains a volatile currency to trade. The central banks will do what they can to ease things, but with all the secrecy and unpredictability of situations, there is no way to know what that actually means. If you are a beginner, steer clear of the JPY trade for awhile, there will be more to come.

Finally, as another reminder, please donate something to help the people in Japan. You can see my post about and easy donation option here: Forex Traders for Japan.